Steel industry, Commerce Ministry at loggerheads over MIP renewal

The government is likely to extend the MIP imposed on 173 steel items, ranging from $341 to $752 per tonne, on February 5

The commerce ministry and steel makers might have a face-off over a fresh list of items for imposing minimum import price (MIP), as the latter has sought inclusion of certain items and the former wants the list to be pruned.

The government is likely to extend the MIP imposed on 173 steel items, ranging from $341 to $752 a tonne, on February 5.

The non-tariff barrier was imposed for six months to safeguard domestic steel makers from cheap imports, mainly from China.

Hot-rolled and cold-rolled austenitic stainless steel, an alloy containing chromium and nickel, and hot-rolled and cold-rolled chromium stainless steel could be included in the list, a source said.

Steel Minister Birender Singh met various stakeholders from the industry on July 28 and deliberated on issues affecting the sector, especially in the backdrop of a slowdown in the international steel industry and MIP for the domestic sector.

The commerce ministry wants the steel ministry to reduce the number of steel products that are currently under MIP norms.

The country has come under attack from other World Trade Organization members who view the move as protectionist, a official said, who did not want to be named.

“Under the current circumstances, removing some items from the MIP list seems a plausible option.” he added.

In a July meeting of the goods council at the WTO, nine members, including the US, the European Union, Japan, Australia and China, among others, had asked India to justify its continued restrictions on imported steel.

While a global downturn in steel prices have forced countries to impose temporary trade restrictions to help domestic manufacturers, the MIP being renewed for another six months might constitute a permanent measure and force India to explain its position to the WTO.